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Furloughed Employees To Receive Full Redundancy Payments

CJRS is ending and the Government wants to help ...

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Posted by Roger Eddowes on 20/08/2020 @ 8:00AM

Following on from the Coronavirus Job Retention Scheme brought in to save jobs during the lockdown, the Government is ensuring redundancy pay is based on normal wage rather than the reduced 80% pay for all furloughed employees ...

These measures are designed to stop mass redundancies of furloughed employees!

These measures are designed to stop mass redundancies of furloughed employees!

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This new law came into force on 31st July and guarantees those furloughed under the Coronavirus Job Retention Scheme (CJRS) and subsequently made redundant receive their full entitlement.

"These new rules apply to basic statutory redundancy pay!"

They would not impact any arrangements for enhanced redundancy pay if it was detailed in an individuals employment contract. The new law also affects Statutory Notice Pay and any awards for unfair dismissal. It's all designed to ensure employees are not short-changed if they do not return to work following the ending of their employer's furlough scheme.

These measures are part of the overall Government package designed to stop mass redundancies and employers are being urged to use the Jobs Retention Bonus of £1,000 per furloughed employee if they're still in post on 31st January 2021.

"Research shows up to 650,000 people have been made redundant!

This is just since lockdown ended and CJRS started to wind down, so these new measures, as well as the Jobs Retention Bonus, should slow down mass job losses from the pool of furloughed employees until the economy improves.

Until next time ...

Business Godparent


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About Roger Eddowes ...


Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.

Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.